Australia Inflation Q3 2016

Australia: Inflation picks up in Q3

October 26, 2016

In the third quarter of 2016, consumer prices rose 0.7% over the previous quarter, surpassing market analysts’ expectations of a 0.5% increase and Q2’s 0.4% rise. The Australian Bureau of Statistics elaborated that higher prices for housing, alcohol and tobacco, as well as for food and non-alcoholic beverages registered the most significant increases in Q3. These increases were partially offset by lower prices for communication, transport and health.

Inflation came in at 1.3% in Q3, up from 1.0% in Q2, which had marked a 17-year low. Meanwhile, annual average inflation inched down from 1.4% in Q2 to 1.3% in Q3, below the Reserve Bank of Australia’s inflation target of 2.0%–3.0%.

FocusEconomics panelists expect that inflation will average 1.2% in 2016, which is down 0.1 percentage points from last month's forecast. For 2017, panelists see average inflation of 2.0%, which is unchanged from last month’s estimate.

Author:Christopher Mc Innes, Economist

Sample Report

Looking for forecasts related to Inflation in Australia? Download a sample report now.

Newsletter Subscription

Australia Economic News

Seasonally-adjusted employment increased by 16,000 jobs in January compared to the prior month, down from the previous month’s revised increase of 33,500 (previously reported: +34,700) but still overshooting market analysts’ expectations for a 15,000 gain.

The business confidence index produced by the National Australia Bank (NAB) climbed to 12 points in January, the highest reading since April 2017, from December’s revised 10 points (previously reported: +11 points).